Indemnification Clause Was Not A Third-Party Clause, So Fees Were Proper; $790-$850 Hourly Rate For 43-44 Year Los Angeles Litigator, $360-$395 For 4-5 Year Associate, And $290 For Paralegals Found To Be Reasonable By The Trial Judge And Appellate Court.
Just to show you how fee recovery can frequently come close to the underlying compensatory dispute, we now post on a fee award to famed volleyball player Kerri Walsh Jennings which was affirmed on appeal in Jennings v. AOS Group, LP, Case No. B289681 (2d Dist., Div. 4 July 29, 2019) (unpublished).
In this case, Ms. Walsh filed a breach of contract complaint claiming that defendant AOS failed to pay her $150,000 for using her name and likeness. She also sought attorney’s fees and costs, with the lower court not striking the fee prayer. AOS then paid the $150,000 plus interest and costs, but no settlement agreement was ever signed. Ms. Walsh Jennings then moved for attorney’s fees as the prevailing party, relying on a contractual provision which stated: “AOS agrees to defend, indemnity and hold harmless Ms. Walsh Jennings, her agent, representatives and employees from and against any all damages, claims, suits, actions judgments, costs and expenses including reasonable attorneys’ fees, arising out of: (a) any material breach by AOS of this Agreement or any representation or warranty made hereunder . . . .” The lower court awarded Ms. Walsh Jennings her fully requested fees of $92,726.
Although AOS argued that this was a true third-party indemnification clause not triggering fees, the appellate court, in line with the trial judge, disagreed. The language in the particular clause did not limit its application to third-party lawsuits, supported by the reasoning in several cases distinguishing these types of broader clauses from true indemnity clauses. (Wilshire-Doheny Associates, Ltd. v. Shapiro, 83 Cal.App.4th 1380, 1396 (2000); Zalkind v. Ceradyne, Inc., 194 Cal.App.4th 1010, 1022-1024 (2011).)
With respect to reasonableness of fees, the trial court concluded that the following hourly rates were reasonable for Los Angeles litigators: (1) $790 in 2017 and $850 in 2018 for a 43-44 year litigator (who discounted his 2018 rate from $950); (2) $360-$395 for a 4-5 year associate (discounted from her $490 rate); and (3) $290 for paralegals (discounted from $300). In doing so, the trial judge observed he had recently approved fees for Latham, Gibson, and Munger in excess of $1,200, finding the senior attorney work was in line with top firm work. The appellate court found no abuse of discretion with these determinations.
Also, Ms. Walsh Jennings was found entitled to appellate fees for prevailing again.